INFRASTRUCTURE, BASIC/PILLAR INDUSTRIES
In 2014, the Bank's key focus remained on primary areas in infrastructure and basic/pillar industries, such as coal, electricity, oil, transportation, agriculture, forestry, water resources, telecommunications and public infrastructure. Total domestic new loans in these sectors increased by RMB 710.2 billion, a large share of which went to a number of national priority projects including the highway network, passenger railway line network, oil and gas infrastructure, coal processing, new-energy-based power generation and water resources projects. Key support was given to the city-and-industry integration demonstration projects in Anhui's six prefectures and new urbanization pilots in Liaoning and Suzhou. The Bank supported major network construction projects, including information technology infrastructure as well as the communication equipment export businesses. The Bank disbursed RMB 12.2 billion to the postal and telecommunications sector in 2014.
In 2014, CDB diversified its financial services products to adapt to the changes brought about by China's railway industry reform. The Bank deepened its cooperation with China Railway Corporation on railway construction, rolling stock procurement, bond underwriting and asset securitization, and actively supported the initiative for international expansion in the railway sector. The Bank also provided financing support to projects of intercity railway, urban railway, railway construction for resource development and mixed-ownership railway construction, as well as land acquisition and relocation for joint-venture railway projects. Total loan disbursement for the sector amounted to RMB 236.7 billion in 2014. As of the end of 2014, the Bank had an outstanding loan balance of RMB 762.5 billion to the railway industry, maintaining its leading position in that market sector.
In 2014, the Bank rigorously pushed funding for extending incomplete national highways and relieving bottleneck sections in national roads, and building roads in central and western rural regions, as well as the "One Belt, One Road" network. Key projects included the Hechi-Baise Highway and the Gansu Section (Baigeda-Mingshui Road) of the Beijing-Xinjiang National Highway. The Bank made loan commitments totaling RMB 354.4 billion to this sector in 2014, supporting the construction of 5,684 km of highways, 5,847 km of first and second-grade roads and 73,766 km of rural roads. Incremental loans totaled RMB 149.6 billion. As of the end of 2014, the Bank had an aggregate outstanding balance of RMB 1,387.8 billion in loans to this sector.
In 2014, the Bank increased support for clean energy projects including hydropower, wind power, nuclear power and photovoltaic power, with an aim of balancing the country's energy structure. Specific projects included Phase II of Shandong Haiyang Nuclear Power Plant, Phase I of Guangdong Taishan Nuclear Power Plant, the Wudongde and Baihetan hydropower stations on the Jinsha River, the 400MW Wind Farm of Zone AB of Datang Guazhou Beidaqiao No. 6 Wind Farm in Gansu, CECEP's 100MW Grid-connected Photovoltaic Power Plant in Liangzhou, and the No. 4 Thermal Power Plant Waste-to-Energy Project in Guangzhou. Incremental loans totaled RMB 22 billion. As of the end of 2014, the Bank had an outstanding balance of RMB 772.4 billion in loans to this sector.
AGRICULTURE, FORESTRY AND WATER RESOURCES
In 2014, CDB created innovative financing models in areas including medium- and long-term agricultural financing, establishment of corporate entities required for making investment and financing arrangements and loans pledged against rural land contracting and operations rights. The Bank increased its support to agricultural infrastructure, modern farming, overseas expansion of agricultural enterprises, agricultural modernization and agricutlural produce processing. It promoted the establishment of food security, price stability and food safety regimes. Loans made to the agriculture sector amounted to RMB 32.6 billion. The Bank continued to strengthen cooperation with the Ministry of Water Resources with an aim of accelerating the construction of major water resources projects. Key national projects funded included the Guangxi Datengxia Hydro-junction Project and Xinjiang Altas Hydro-junction Project. Loans made to the water resources sector reached RMB 81.4 billion, accounting for nearly 50% of the total market share. As of the end of 2014, the Bank had an outstanding balance of RMB 357.4 billion in loans to the agriculture, forestry and water resources sectors.
PETROLEUM AND PETROCHEMICAL
In 2014, the Bank actively worked in line with the nation's development strategies and planning for the oil and gas industry by increasing financing support to key central SOEs as well as the nation's strategic and commercial petroleum reserves. It also made active efforts in project implementation with partner countries/regions in various energy projects. During the year, the Bank disbursed more than RMB 192.4 billion in loans to support a number of oil and gas infrastructure projects, including the Yuedong LNG Terminal. As of the end of 2014, the Bank's outstanding loan balance in this sector was RMB 524.3 billion.
In 2014, with a continued focus on clean and efficient use of coal, the Bank actively promoted upgrading and restructuring within China's fragmented coal industry, advanced the exemplary developments of the coal chemical industry, and supported coal seam gas leakage prevention, as well as other coal mine safety projects. The Bank lent RMB 51.8 billion in 2014 -- key coal processing projects included the Sinopec Group's Anhui 700,000 ton methanol-to-olefins (MTO) project and Shenhua Group's Shaanxi 600,000 ton MTO project. As of the end of 2014, the Bank's total loans to coal-related projects were RMB 174.5 billion.
CDB continued with its strong support of public infrastructure building and new urbanization in China through improving public service and urban transport capacity, and of the development of traditional infrastructure sectors, such as urban rail systems and airports. Likewise, the Bank supported municipal pipeline networks, healthcare and smart city initiatives in order to boost the quality of urban development. The Bank promoted city-and-industry integration through pilot projects in six cities of Anhui Province, supported the construction of projects such as underground pipes in PPP model, and completed its project review of the Shenyang Hunnan Modern Trams, which adopted the mode of government procurement for the first time. The Bank also financed the development of port terminals in the Caofeidian Zone of Tangshan's port, inland waterway of Jiangsu Province's 12th Five-Year Plan, urban rail systems in Beijing, Xi'an and Chengdu, and the logistic infrastructures such as the logistic center for the importation of vehicles in the Zhangjiagang bonded area and the Commodity & Trade Logistics Park Phase II for International Toys in Chenghai. As of the end of 2014, the Bank's outstanding loans for public infrastructure projects amounted to RMB 1,302.1 billion.
RESTRUCTURING; INNOVATION; UPGRADING
COORDINATED REGIONAL DEVELOPMENT
In 2014, the Bank continued to implement its regional development strategy to further accelerate the development in central and western China and to commence a new round of rejuvenating Northeast China, by focusing on "One Belt, One Road", coordinated development of the Beijing, Tianjin and Hebei districts, construction of the Yangtze River Economic Zone and funding national-level new districts such as Shaanxi Xixian New District, Guizhou Gui'an New District, Qingdao West Coast New District, and Dalian Jinpu New District. The Bank's new loans to the central and western regions during 2014 totaled RMB 462.9 billion, accounting for 66%, whilst new loans to the Northeast Industrial Base were RMB 79.6 billion, accounting for 11%. New outstanding loans made to Tibet and Tibetan-inhabited areas in four provinces during the year totaled RMB 14.7 billion, while new outstanding loans to Xinjiang amounted to RMB 21.8 billion.
INDUSTRIAL RESTRUCTURING AND UPGRADING
Industrial restructuring and upgrading is an integral part of accelerating China's economic development. In 2014, the Bank continued to promote industry-wide adjustment within conventional industries by boosting major construction projects in mineral resources and their products, such as steel and coal, coordinated industrial development of the Beijing, Tianjin and Hubei districts, conducted a comprehensive credit review of Baosteel and Anshan Iron & Steel, along with industrial restructuring and technological upgrading of key industries. The Bank also provided funds to support Zhuzhou New Times Material's acquisition of ZF Friedrichshafen AG's rubber and plastic business and Huaxin Cement's construction of a new dry process cement production line in Tajikistan, fueling moves to go global focused on advanced production capacity.
STRATEGIC EMERGING INDUSTRIES
In 2014, the Bank continued its support of strategic emerging industries and advanced manufacturing. It established a trilateral cooperation mechanism among the banking sector, government and business enterprises to enable industrial development. The Bank promoted the establishment of the RMB 120 billion National Industrial Integrated Circuits Fund , signed the Financial Cooperation Agreement for Driving the Establishment of Information Consumption Pilot Cities with relevant ministries and authorities, and facilitated the construction and development of an information technology network infrastructure and other significant networks. The Bank co-launched the Recommendations on Implementing the Oceanic Economic Development Pilot Program and identified key points for support, including the latest generation of information technology, along with continued exploration of maritime and biological areas. It also developed and reviewed a series of important projects such as BOE Technology's generation 8.5 LCD production line. The Bank offered loans of RMB 218.2 billion to strategic emerging industries in 2014.
ENVIRONMENTAL PROTECTION, ENERGY COSERVATION AND EMISSIONS REDUCTION
In 2014, the Bank continued to implement its green credit lending practices while trying to develop market-oriented corporate entities, especially in areas of air pollution treatment, the recycling industry, sewage treatment and clean/renewable energy. These efforts were pursued through a variety of means, including franchising, government investment and subsidy and energy performance contracting. The Bank also actively cultivated market research and innovations in financing modes, in order to accelerate consideration of ecological factors in civil construction. The Bank provided financing support to the No.2 water recycling plant of Beijing Drainage Group, Zhengwangfen Water Recycling Plant and the integrated utilization of crop stalks project spearheaded by Heilongjiang Quanlin Eco-agriculture Co., Ltd. in Jiamusi. As of the end of 2014, the Bank's outstanding loans to environmental protection and energy conservation projects stood at RMB 958.5 billion, up by 7.2% year-on-year, which contributed to savings of 54.52 million tons of standard coal and 520 million tons of water, and reduction emissions of 140 million tons of carbon dioxide and 2.69 million tons of sulfur dioxide.
In 2014, the Bank continued to strengthen its cooperation with relevant ministries and authorities and focused on nine types of industrial development. These included news, publications, broadcasting and film, cultural industry infrastructure and tourist industry transformation and upgrade. Successfully operated projects included protection and exhibitions in the Jiayuguan Cultural Heritage, general promotion of Qing Yan Ancient Town in Guizhou, Guilin World Tourism and Culture Center, Xiamen Hua Qiang Cultural and Technological Industrial Base, mergers and acquisitions for North Media, African Digital TV Network, Shanghai Media Group's General Credit, and Mobile Multimedia Broadcasting. The Bank offered loans of RMB 42.5 billion to the cultural industry in the year, making it the leading lender once again in this sector. As of the end of 2014, the Bank had outstanding loans totaling RMB 176.9 billion to the cultural industry.
LIVELIHOODS AND SOCIAL WELLBEING
Protecting and improving our people's wellbeing is not only a significant element of China's social development, but also a key area to which the Bank has provided tremendous support. In 2014, the Bank actively cooperated with related authorities and local governments, created innovative financing models and channeled funds to support areas of affordable housing, healthcare, SMEs, employment, education, agriculture and new rural development. Based on the State's requirements for fee and margin reduction, the Bank waived a total of RMB 2.5 billion in commitment fees and financial advisory fees for urban renewal and small- and micro-business loans, thus contributing to the alleviation of high-cost financing as a bottleneck to progress and development. The Bank explored the "blue ocean" of pension business. As of the end of 2014, the Bank offered pension loans of RMB 2.5 billion in aggregate. In 2014, emergency loans of RMB 2.08 billion were issued for the relief of earthquake-hit Ludian and Pu'er in Yunnan Province and other disaster-hit areas in Henan and Liaoning provinces.
AFFORDABLE HOUSING PROJECTS
In 2014, the Bank focused on urban renewal as a critical element within the affordable housing program, devoted significant efforts to resolve the funding bottleneck of urban renewal and dedicated efforts to support key projects for it. The Bank established CDB Housing Finance to improve centralized, professional and detail-oriented business management for urban renewal. The Bank cooperated with relevant authorities and local governments to innovate working practices and focused on urban renewal in Tienan, Chifeng, Inner Mongolia and Sanma Industrial and Mining District, Guiyang, Guizhou as well as a large number of such projects in Jilin Province, Beijing, Hebei Province, Henan Province, Hunan Province and Hubei Province. The Bank offered RMB 408.6 billion in loans for urban renewal projects this year, up by nearly 300% year-on-year, to build 900 million m2 of housing in aggregate and provide homes for 9.16 million households or 28.57 million people, accounting a market share of over 80%. As of the end of 2014, the outstanding loan balance for affordable housing loans was RMB 783.9 billion, including RMB 636.2 billion urban renewal loans.
In 2014, the Bank lent RMB 189.3 billion to projects under the State's new rural community initiative, which included the development of rural infrastructure, supporting key leading industry players, rural healthcare and education programs. As of the end of 2014, the Bank had accumulatively disbursed RMB 1.6 trillion in loans for rural development, and had outstanding loans totaling RMB 754.9 billion.
In 2014, upholding the concept of inclusive finance, the Bank increased its support to SMEs and micro enterprises by strengthening the development of dedicated financing structures and models as well as enhancing its capabilities in business innovation and risk management. Total loans made to the SME sector amounted to RMB 2.47 trillion as of the end of 2014, including RMB 1.03 trillion provided to micro enterprises.
In 2014, the Bank continued to strengthen its cooperation with the authorities in college student loans both in the universities and hometowns of the students for improved services: launch of call centers and internet-based information centers to increase loan application efficiency. The Bank created innovative measures to administer loan-related matters, such as repayment via POS. It also expanded the scope of the program to include start-up loan for graduates and other employment support, such as co-organization of job fairs with local authorities in six provinces, including Henan and Hubei. Loan application service was made available during high school years and the upper limit for each loan was raised for both undergraduates and graduates. More regions were included in the loans-for-students' hometown program. During 2014, the Bank lent RMB 14.69 billion, helping 2.44 million students complete their education, satisfying borrowing demands of more than 90% of students from needy families across the country.
In 2014, the Bank focused on poverty alleviation and financial development through strengthened cooperation between the Bank and governments. Its innovative poverty alleviation and financial development vigorously promoted targeted poverty alleviation and actively created new approaches to supporting people's livelihoods through exploring new models including "Guizhou rural microloans" and "Gansu Qingyang industrial poverty alleviation". Throughout the year, the Bank had accumulatively disbursed RMB 147.7 billion in loans to poor counties and destitute areas as designated by the Central Government;. The Bank developed planning consulting reports for anti-poverty programs in six targeted counties and one pairing-assistance county and donated RMB 11.4 million to effectively support the rural infrastructure, education, health care and specialty industries and promote economic development and improve people's livelihood in poor areas. As of the end of 2014, the Bank had an outstanding balance of RMB 708.2 billion in loans to poverty alleviation.
In 2014, the Bank proactively responded to the new calls to further open up to the rest of the world, and continued broadening its collaboration with foreign governments, enterprises and financial institutions in key areas of infrastructure, equipment manufacturing, finance, agriculture, social sectors and energy to achieve mutual benefit and win-win outcomes. The Bank made positive contributions to the new silk road strategy "One Belt, One Road" through promoting major projects and supporting railway and nuclear power enterprises to "Go Global". The Bank participated in establishing the Silk Road Fund, assisted in establishing the Asian Infrastructure Investment Bank, and made significant progress in the implementation of measures under the multilateral financial cooperation frameworks of the Shanghai Cooperation Organization Interbank Association, China-ASEAN Interbank Association and BRICS Interbank Cooperation Mechanism. The Bank also operated the China-Africa Development Fund and the China-Portugal Fund as overseas investment platforms, continued its support of Chinese enterprises in their "Go Global" endeavors, and promoted the internationalization of the Chinese currency, the renminbi. The Bank's risk warning system for its international business improved and the foreign asset quality remained stable. As of the end of 2014, the Bank had outstanding foreign currency loans of USD 267 billion and an offshore yuan-denominated loan balance of RMB 56.4 billion, which further cemented its status as a pillar of cross-border financing in China. With correspondent banking relationships established with 707 banks in 106 overseas markets, the Bank has maintained a global network of correspondent banks that underpins steady improvements in the Bank's service capability.
The Bank has continued its international collaboration practices with partners in Asia, Africa and Latin America by adhering to the principle of "learning from each other, building trust, sharing experiences, and developing jointly". 439 participants from Shanghai Cooperation Organization Interbank Association, African government departments and institutions attended 22 joint seminars to promote capability building, experience sharing and enhancement of cooperation quality. In addition, CDB Scholarships sponsored 99 international students for their studies in China, who, would contribute to advancing cross-cultural exchanges.